The Economics of Fractional-Reserve Banking

3,947 views · Published 26 September 2016 · 37:57 · Indexed 23 October 2026

Channel: TomWoodsTV · 2016 · News & Politics

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Fractional-reserve banking, in which only a fraction of demand deposits are available on demand (the rest being lent out), has been a source of controversy even among self-identified Austrian economists. Jeff Herbener joins us to discuss the purely economic effects of fractional-reserve banking. Subscribe to the Tom Woods Show: https://itunes.apple.com/us/podcast/the-tom-woods-show/id716825890?mt=2
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